For Immediate Release                                                                                                         28 October 2008

NIPSON DIGITAL PRINTING SYSTEMS PLC ('Nipson' or 'the Company')

RESTRUCTURING OF FRENCH SUBSIDIARY

Following the announcement on 10 October 2008, concerning the Trading Update and financial difficulties experienced by Nipson SAS (the French Subsidiary) and the later announcement of the 14 October 2008 relating to the proposed financial restructuring, board changes and change of control, the new Board has evaluated and assessed the operational and financial situation of the group.  As a result of this assessment the French Subsidiary is to be restructured.

Nipson SAS, as the Group's main operating subsidiary, has continued to experience difficulties in meeting its obligations in respect of on-time payments which has been aggravated by continuing losses in the business. The difficult financial situation of the French Subsidiary has led to the withdrawal of credit insurance by a number of providers of insurance and rating services, which, aggravated by tighter credit restrictions, has led to even less flexibility in the day to day operating of its working capital. The economic crisis has delayed customer payments especially from countries where capital is not so free flowing and has also reduced the possibility of obtaining fresh funding from other sources.

The French Subsidiary must restructure the level of its operations, including subcontracting out the non-core part of its production and reducing the level of fixed costs and operating expenses.

The Board has therefore unanimously decided to confer to the President of the Subsidiary, Mr. Ghislain Segard, all powers to carry through the necessary changes including filing for the French 'Redressement Judiciaire' which was filed today. This will mean the nomination of an administrator by the French Commercial Courts who will supervise the President in the process of the restructuring. The restructuring plan will include a sizeable reduction in the number of employees, although the exact number has yet to be finalized. The administrator will also supervise the payment of creditors, thus protecting the company during the period of restructuring. The government scheme will allow the company an additional delay in paying redundancy payments, salaries and social charges.

There is unlikely to be an effect on the PLC Company itself and the Group will continue to operate.  The Group's other subsidiaries in the USA, UK, Germany and Italy and the distribution network are expected to continue to trade normally.

Further to Marc Maes's appointment as a member of the Board on the 14 October 2008, he was elected as Chairman of the Nipson DPS PLC Board as from the 23 October 2008.

Contacts :

Nipson Digital Printing Systems PLC

Robert Cahill, Group Finance Director                         +33 (0) 384 545 250

Beaumont Cornish Limited

Roland Cornish/Rosalind Hill Abrahams                       +44 (0) 207 628 3396

Glossary: Redressement Judiciare : the English equivalent might be considered to be 'receivership under protective administration'